Audit, Risk and Improvement Committee - 14/05/2026

Topics

• Waverley committee calls for new borrowing and debt-servicing policy
  Council’s audit committee wants a formal policy governing borrowing and debt servicing while warning of a delicately balanced budget and future funding pressure.
  The policy could shape how residents assess Council’s capital borrowing, debt costs and financial sustainability.
• WHS authority and training gaps to face further Council scrutiny
  An internal audit found outstanding work health and safety issues, prompting a report on who can require managers to comply.
  The review may affect safety training, contractor management and accountability across Council operations.
• Council procurement performance report ordered after work-plan gap
  The audit committee found the procurement report did not cover a required work-plan item and ordered a separate report on performance, trends and risks.
  The follow-up could reveal how Council purchasing is performing and where public-money or contract risks remain.

Decisions

• Draft 2026–27 Budget and Long Term Financial Plan noted
  The Committee noted the draft 2026–27 Budget and draft Long Term Financial Plan, which Council had approved for public exhibition.
  The documents set out Council’s proposed financial direction and priorities for the coming year and longer term.
• Borrowing and debt-servicing policy requested
  Management was asked to develop a policy covering borrowing and debt servicing, present it to the Committee before seeking final Council approval, and clarify the treatment of debt service and reserves.
  The policy is intended to improve transparency around borrowing for capital projects, debt costs and the use of Council reserves.
• Work health and safety follow-up requested
  The Committee noted the internal audit report on work health and safety and requested a report at the next meeting on organisational authority, responsibility and proposed arrangements to ensure compliance.
  The follow-up is intended to address audit findings concerning incomplete training, contract management and the authority of the WHS team to require compliance.
• Actions register reporting to be improved
  The Committee requested clearer cross-references, progress updates, completion recommendations and more meaningful status categories in the register of actions from previous meetings. Action Item 15 is to be changed from “Deferred” to “On Track”.
  Improved reporting should make it easier for the public and oversight bodies to see whether agreed Council actions are progressing.
• Procurement performance report requested
  The Committee noted that the procurement report on the agenda did not address item 23 of the 2026 Annual Work Plan and requested a report on procurement performance, trends and risks at the next meeting.
  The report will provide further oversight of Council purchasing performance and procurement risks.
• Recordkeeping monitoring result noted
  The Committee noted Council’s improved Recordkeeping Monitoring Exercise score of 3.42 out of 5. The result is above the NSW local government benchmark of 3, allowing Council to continue with biennial self-assessment rather than being audited by State Records.
  The result indicates improved recordkeeping performance and affects how Council’s records compliance will be monitored.

Discussion

• Financial sustainability and debt
  The Committee discussed Council’s delicately balanced budget, debt service ratios, borrowing for capital projects, restricted and unrestricted reserves, and funding pressures after the ICT Modernisation Project is completed in 2028.
  These issues may influence future spending choices, borrowing costs and Council’s capacity to fund services and infrastructure.
• Work health and safety compliance
  The internal audit identified progress on incomplete training and contract management, while the Committee sought clarity about who can direct business managers to comply with WHS requirements.
  The issue concerns the safety systems used by Council and its contractors and staff.
• Governance and meeting transparency
  The Committee discussed a proposed amendment to its Terms of Reference so ARIC agendas could be provided to all Councillors, as well as a new Code of Meeting Practice and management of actions and investigations.
  Broader access to committee agendas and clearer action tracking could strengthen public accountability.
• Procurement oversight
  A future report is to address procurement performance, trends and risks required under item 23 of the ARIC Annual Work Plan.
  Procurement oversight can affect how Council contracts for goods, services and works and how risks to public funds are managed.
• Recordkeeping compliance
  Council’s recordkeeping self-assessment score improved to 3.42 out of 5, above the NSW local government benchmark of 3.
  Reliable records support transparency, accountability and access to information about Council decisions.

Impacts

• The draft 2026–27 Budget and Long Term Financial Plan were already approved for public exhibition, allowing residents to review Council’s proposed financial direction.
• A future borrowing and debt-servicing policy may improve public visibility of capital borrowing, debt costs and reserve movements.
• WHS compliance arrangements and training oversight will be examined further at the next meeting.
• Future procurement reporting will provide additional information about Council purchasing performance and risks.
• Council can continue biennial recordkeeping self-assessments after achieving a score above the NSW local government benchmark.

Places

• Bondi Junction (suburb)
  Location of the meeting and subject of a Master Plan discussed in the General Manager’s update.
• The Boot Factory, Spring Street (facility)
  Venue for the Committee meeting.
• Waverley Council (local government area)
  Council responsible for the budget, financial management, WHS, procurement and recordkeeping matters considered.

Next

• Management to develop a borrowing and debt-servicing policy and present a draft to ARIC before seeking final Council approval.
  Before a future ARIC meeting and subsequent Council consideration.
• Management to provide a report on organisational authority and responsibility for WHS compliance.
  Next ARIC meeting.
• Update the previous-meetings action register with clearer statuses, comments, cross-references and completion recommendations.
  Future action-register reports; expected by the next scheduled ARIC meeting unless otherwise specified.
• Update Action Item 15 status from “Deferred” to “On Track”.
  In the action register.
• Provide a report on Council’s procurement performance, trends and risks to address item 23 of the Annual Work Plan.
  Next ARIC meeting.
• Provide the finalised sick leave provisions of the new Award to the Committee.
  When the Award is finalised.

Extract

Minutes of Audit, Risk and Improvement Committee Meeting 14 May 2026 This is of the minutes of the Audit, Risk and Improvement Committee meeting held on 14 May 2026 MINUTES OF THE AUDIT, RISK AND IMPROVEMENT COMMITTEE MEETING HELD AT THE BOOT FACTORY, SPRING STREET, BONDI JUNCTION ON THURSDAY, 14 MAY 2026 Members Present: John Gordon (Chair) Independent Member Lisa Berwick Independent Member Sheridan Dudley Independent Member Cr Joshua Spicer Councillor Member (non-voting) In Attendance: Emily Scott General Manager Sharon Cassidy Director, Planning, Sustainability and Compliance Tara Czinner Director, Corporate Services Shane Smith Acting Director, Assets and Operations Ben Thompson Directo...